A Warranty Deed

question 10

Multiple Choice

A warranty deed:

• A) conveys title and guarantees to make good any defects in the title.
• B) warrants against only those encumbrances that arise after a grantee acquires the property.
• C) is used to cure technical defect in the chain of title to property.
• D) disallows a grantee the right to sue the grantor.

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Definitions:

Unsecured Creditors

Creditors who have lent money without taking collateral. If the borrower defaults, these creditors stand behind secured creditors in the priority of claims.

Stockholders

Investors who own shares of stock in a corporation, holding a claim on its assets and earnings.

Spin-off

The creation of an independent company through the sale or distribution of new shares of an existing part of a parent corporation.

Equity Carve-out

A strategy where a parent company sells a minority interest of a subsidiary to outside investors while retaining control.